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Keller sbm3 07

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Mamun Mozid PGDHRM, CSCM
Mamun Mozid PGDHRM, CSCM

This document discusses how brands can leverage secondary associations to build brand equity. It defines secondary associations as existing brand associations that are linked to other entities, such as the brand's company, country of origin, distribution channels, or co-branded partners. Leveraging these secondary associations can increase brand awareness and transfer favorable attributes. Specific tactics examined include co-branding, ingredient branding, licensing, celebrity endorsements, event sponsorships, and highlighting reviews from third-party sources. Both advantages and disadvantages are outlined for each tactic.

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7.1 CHAPTER 7:CHAPTER 7: LEVERAGING SECONDARY BRANDLEVERAGING SECONDARY BRAND KNOWLEDGE TO BUILD BRAND EQUITYKNOWLEDGE TO BUILD BRAND EQUITY Kevin Lane KellerKevin Lane Keller Tuck School of BusinessTuck School of Business Dartmouth CollegeDartmouth College
7.2 Figure 2-9 Building Customer-Based Brand Equity BRAND BUILDING TOOLS AND OBJECTIVES CONSUMER KNOWLEDGE EFFECTS BRANDING BENEFITS Choosing Brand Elements Brand name Memorability Logo Meaningfulness Symbol Appeal Character Transferability Packaging Adaptability Slogan Protectability Developing Marketing Programs Product Tangible and intangible benefits Price Value perceptions Distribution channels Integrate”push” and “pull” Communications Mix and match options Leverage of Secondary Associations Company Country of origin Channel of distribution Other brands Endorsor Event Awareness Meaningfulness Transferability Possible Outcomes Greater loyalty Less vulnerability to competitive marketing actions and crises Larger margins More elastic response to price decreases More inelastic response to price increases Greater trade cooperation and support Increased marketing communication efficiency and effectiveness Possible licensing opportunities More favorable brand extension evaluations Brand Awareness Depth Breadth Recall Recognition Purchase Consumption Brand Associations Strong Favorable Unique Relevance Consistency Desirable Deliverable Point-of-parity Point-of-difference
7.3 Leveraging Secondary AssociationsLeveraging Secondary Associations  Creation of new brand associationsCreation of new brand associations  Effects on existing brand knowledgeEffects on existing brand knowledge  Awareness and knowledge of the entityAwareness and knowledge of the entity  Meaningfulness of the knowledge of the entityMeaningfulness of the knowledge of the entity  Transferability of the knowledge of the entityTransferability of the knowledge of the entity
7.4 Leveraging Secondary AssociationsLeveraging Secondary Associations  Brand associations may themselves be linked to otherBrand associations may themselves be linked to other entities, creating secondary associations:entities, creating secondary associations:  Company (through branding strategies)Company (through branding strategies)  Country of origin (through identification of product origin)Country of origin (through identification of product origin)  Channels of distribution (through channels strategy)Channels of distribution (through channels strategy)  Other brands (through co-branding)Other brands (through co-branding)  Special case of co-branding isSpecial case of co-branding is ingredient brandingingredient branding  Characters (through licensing)Characters (through licensing)  Celebrity spokesperson (through endorsement advertising)Celebrity spokesperson (through endorsement advertising)  Events (through sponsorship)Events (through sponsorship)  Other third-party sources (through awards and reviews)Other third-party sources (through awards and reviews)
7.5  These secondary associations may lead to aThese secondary associations may lead to a transfer of:transfer of:  Response-type associationsResponse-type associations  Judgments (especially credibility)Judgments (especially credibility)  FeelingsFeelings  Meaning-type associationsMeaning-type associations  Product or service performanceProduct or service performance  Product or service imageryProduct or service imagery Leveraging Secondary AssociationsLeveraging Secondary Associations
7.6 Co-BrandingCo-Branding  Occurs when two or more existing brands areOccurs when two or more existing brands are combined into a joint product or are marketedcombined into a joint product or are marketed together in some fashiontogether in some fashion  Examples:Examples:  Sony EricssonSony Ericsson  Yoplait Trix YogurtYoplait Trix Yogurt  Nestle’s Cheerios Cookie BarsNestle’s Cheerios Cookie Bars
7.7 Advantages of Co-BrandingAdvantages of Co-Branding  Borrow needed expertiseBorrow needed expertise  Leverage equity you don’t haveLeverage equity you don’t have  Reduce cost of product introductionReduce cost of product introduction  Expand brand meaning into related categoriesExpand brand meaning into related categories  Broaden meaningBroaden meaning  Increase access pointsIncrease access points  Source of additional revenueSource of additional revenue
7.8 Disadvantages of Co-BrandingDisadvantages of Co-Branding  Loss of controlLoss of control  Risk of brand equity dilutionRisk of brand equity dilution  Negative feedback effectsNegative feedback effects  Lack of brand focus and clarityLack of brand focus and clarity  Organizational distractionsOrganizational distractions
7.9 Ingredient BrandingIngredient Branding  A special case of co-branding that involvesA special case of co-branding that involves creating brand equity for materials,creating brand equity for materials, components, or parts that are necessarilycomponents, or parts that are necessarily contained within other branded productscontained within other branded products  Examples:Examples:  Betty Crocker baking mixes with Hershey’sBetty Crocker baking mixes with Hershey’s chocolate syrupchocolate syrup  Intel insideIntel inside
7.10 LicensingLicensing  Involves contractual arrangements wherebyInvolves contractual arrangements whereby firms can use the names, logos, characters, andfirms can use the names, logos, characters, and so forth of other brands for some fixed feeso forth of other brands for some fixed fee  Examples:Examples:  Entertainment (Star Wars, Jurassic Park, etc.)Entertainment (Star Wars, Jurassic Park, etc.)  Television and cartoon characters (The Simpsons)Television and cartoon characters (The Simpsons)  Designer apparel and accessories (Calvin Klein,Designer apparel and accessories (Calvin Klein, Pierre Cardin, etc.)Pierre Cardin, etc.)
7.11 Celebrity EndorsementCelebrity Endorsement  Draws attention to the brandDraws attention to the brand  Shapes the perceptions of the brandShapes the perceptions of the brand  Celebrity should have a high level of visibilityCelebrity should have a high level of visibility and a rich set of useful associations, judgments,and a rich set of useful associations, judgments, and feelingsand feelings  Q-Ratings to evaluate celebritiesQ-Ratings to evaluate celebrities
7.12 Celebrity Endorsement: Potential ProblemsCelebrity Endorsement: Potential Problems  Celebrity endorsers can be overused by endorsingCelebrity endorsers can be overused by endorsing many products that are too varied.many products that are too varied.  There must be a reasonable match between theThere must be a reasonable match between the celebrity and the product.celebrity and the product.  Celebrity endorsers can get in trouble or loseCelebrity endorsers can get in trouble or lose popularity.popularity.  Many consumers feel that celebrities are doing theMany consumers feel that celebrities are doing the endorsement for money and do not necessarilyendorsement for money and do not necessarily believe in the endorsed brand.believe in the endorsed brand.  Celebrities may distract attention from the brand.Celebrities may distract attention from the brand.
7.13 Sporting, Cultural, or Other EventsSporting, Cultural, or Other Events  Sponsored events can contribute to brand equitySponsored events can contribute to brand equity by becoming associated to the brand andby becoming associated to the brand and improving brand awareness, adding newimproving brand awareness, adding new associations, or improving the strength,associations, or improving the strength, favorability, and uniqueness of existingfavorability, and uniqueness of existing associations.associations.  The main means by which an event can transferThe main means by which an event can transfer associations is credibility.associations is credibility.
7.14 Third-Party SourcesThird-Party Sources  Marketers can create secondary associations in aMarketers can create secondary associations in a number of different ways by linking the brand tonumber of different ways by linking the brand to various third-party sources.various third-party sources.  Third-party sources can be especially credibleThird-party sources can be especially credible sources.sources.  Marketers often feature them in advertisingMarketers often feature them in advertising campaigns and selling efforts .campaigns and selling efforts .  Example:Example: J.D. Power and Associates’ well-publicizedJ.D. Power and Associates’ well-publicized Customer Satisfaction IndexCustomer Satisfaction Index

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Keller sbm3 07

  • 1. 7.1 CHAPTER 7:CHAPTER 7: LEVERAGING SECONDARY BRANDLEVERAGING SECONDARY BRAND KNOWLEDGE TO BUILD BRAND EQUITYKNOWLEDGE TO BUILD BRAND EQUITY Kevin Lane KellerKevin Lane Keller Tuck School of BusinessTuck School of Business Dartmouth CollegeDartmouth College
  • 2. 7.2 Figure 2-9 Building Customer-Based Brand Equity BRAND BUILDING TOOLS AND OBJECTIVES CONSUMER KNOWLEDGE EFFECTS BRANDING BENEFITS Choosing Brand Elements Brand name Memorability Logo Meaningfulness Symbol Appeal Character Transferability Packaging Adaptability Slogan Protectability Developing Marketing Programs Product Tangible and intangible benefits Price Value perceptions Distribution channels Integrate”push” and “pull” Communications Mix and match options Leverage of Secondary Associations Company Country of origin Channel of distribution Other brands Endorsor Event Awareness Meaningfulness Transferability Possible Outcomes Greater loyalty Less vulnerability to competitive marketing actions and crises Larger margins More elastic response to price decreases More inelastic response to price increases Greater trade cooperation and support Increased marketing communication efficiency and effectiveness Possible licensing opportunities More favorable brand extension evaluations Brand Awareness Depth Breadth Recall Recognition Purchase Consumption Brand Associations Strong Favorable Unique Relevance Consistency Desirable Deliverable Point-of-parity Point-of-difference
  • 3. 7.3 Leveraging Secondary AssociationsLeveraging Secondary Associations  Creation of new brand associationsCreation of new brand associations  Effects on existing brand knowledgeEffects on existing brand knowledge  Awareness and knowledge of the entityAwareness and knowledge of the entity  Meaningfulness of the knowledge of the entityMeaningfulness of the knowledge of the entity  Transferability of the knowledge of the entityTransferability of the knowledge of the entity
  • 4. 7.4 Leveraging Secondary AssociationsLeveraging Secondary Associations  Brand associations may themselves be linked to otherBrand associations may themselves be linked to other entities, creating secondary associations:entities, creating secondary associations:  Company (through branding strategies)Company (through branding strategies)  Country of origin (through identification of product origin)Country of origin (through identification of product origin)  Channels of distribution (through channels strategy)Channels of distribution (through channels strategy)  Other brands (through co-branding)Other brands (through co-branding)  Special case of co-branding isSpecial case of co-branding is ingredient brandingingredient branding  Characters (through licensing)Characters (through licensing)  Celebrity spokesperson (through endorsement advertising)Celebrity spokesperson (through endorsement advertising)  Events (through sponsorship)Events (through sponsorship)  Other third-party sources (through awards and reviews)Other third-party sources (through awards and reviews)
  • 5. 7.5  These secondary associations may lead to aThese secondary associations may lead to a transfer of:transfer of:  Response-type associationsResponse-type associations  Judgments (especially credibility)Judgments (especially credibility)  FeelingsFeelings  Meaning-type associationsMeaning-type associations  Product or service performanceProduct or service performance  Product or service imageryProduct or service imagery Leveraging Secondary AssociationsLeveraging Secondary Associations
  • 6. 7.6 Co-BrandingCo-Branding  Occurs when two or more existing brands areOccurs when two or more existing brands are combined into a joint product or are marketedcombined into a joint product or are marketed together in some fashiontogether in some fashion  Examples:Examples:  Sony EricssonSony Ericsson  Yoplait Trix YogurtYoplait Trix Yogurt  Nestle’s Cheerios Cookie BarsNestle’s Cheerios Cookie Bars
  • 7. 7.7 Advantages of Co-BrandingAdvantages of Co-Branding  Borrow needed expertiseBorrow needed expertise  Leverage equity you don’t haveLeverage equity you don’t have  Reduce cost of product introductionReduce cost of product introduction  Expand brand meaning into related categoriesExpand brand meaning into related categories  Broaden meaningBroaden meaning  Increase access pointsIncrease access points  Source of additional revenueSource of additional revenue
  • 8. 7.8 Disadvantages of Co-BrandingDisadvantages of Co-Branding  Loss of controlLoss of control  Risk of brand equity dilutionRisk of brand equity dilution  Negative feedback effectsNegative feedback effects  Lack of brand focus and clarityLack of brand focus and clarity  Organizational distractionsOrganizational distractions
  • 9. 7.9 Ingredient BrandingIngredient Branding  A special case of co-branding that involvesA special case of co-branding that involves creating brand equity for materials,creating brand equity for materials, components, or parts that are necessarilycomponents, or parts that are necessarily contained within other branded productscontained within other branded products  Examples:Examples:  Betty Crocker baking mixes with Hershey’sBetty Crocker baking mixes with Hershey’s chocolate syrupchocolate syrup  Intel insideIntel inside
  • 10. 7.10 LicensingLicensing  Involves contractual arrangements wherebyInvolves contractual arrangements whereby firms can use the names, logos, characters, andfirms can use the names, logos, characters, and so forth of other brands for some fixed feeso forth of other brands for some fixed fee  Examples:Examples:  Entertainment (Star Wars, Jurassic Park, etc.)Entertainment (Star Wars, Jurassic Park, etc.)  Television and cartoon characters (The Simpsons)Television and cartoon characters (The Simpsons)  Designer apparel and accessories (Calvin Klein,Designer apparel and accessories (Calvin Klein, Pierre Cardin, etc.)Pierre Cardin, etc.)
  • 11. 7.11 Celebrity EndorsementCelebrity Endorsement  Draws attention to the brandDraws attention to the brand  Shapes the perceptions of the brandShapes the perceptions of the brand  Celebrity should have a high level of visibilityCelebrity should have a high level of visibility and a rich set of useful associations, judgments,and a rich set of useful associations, judgments, and feelingsand feelings  Q-Ratings to evaluate celebritiesQ-Ratings to evaluate celebrities
  • 12. 7.12 Celebrity Endorsement: Potential ProblemsCelebrity Endorsement: Potential Problems  Celebrity endorsers can be overused by endorsingCelebrity endorsers can be overused by endorsing many products that are too varied.many products that are too varied.  There must be a reasonable match between theThere must be a reasonable match between the celebrity and the product.celebrity and the product.  Celebrity endorsers can get in trouble or loseCelebrity endorsers can get in trouble or lose popularity.popularity.  Many consumers feel that celebrities are doing theMany consumers feel that celebrities are doing the endorsement for money and do not necessarilyendorsement for money and do not necessarily believe in the endorsed brand.believe in the endorsed brand.  Celebrities may distract attention from the brand.Celebrities may distract attention from the brand.
  • 13. 7.13 Sporting, Cultural, or Other EventsSporting, Cultural, or Other Events  Sponsored events can contribute to brand equitySponsored events can contribute to brand equity by becoming associated to the brand andby becoming associated to the brand and improving brand awareness, adding newimproving brand awareness, adding new associations, or improving the strength,associations, or improving the strength, favorability, and uniqueness of existingfavorability, and uniqueness of existing associations.associations.  The main means by which an event can transferThe main means by which an event can transfer associations is credibility.associations is credibility.
  • 14. 7.14 Third-Party SourcesThird-Party Sources  Marketers can create secondary associations in aMarketers can create secondary associations in a number of different ways by linking the brand tonumber of different ways by linking the brand to various third-party sources.various third-party sources.  Third-party sources can be especially credibleThird-party sources can be especially credible sources.sources.  Marketers often feature them in advertisingMarketers often feature them in advertising campaigns and selling efforts .campaigns and selling efforts .  Example:Example: J.D. Power and Associates’ well-publicizedJ.D. Power and Associates’ well-publicized Customer Satisfaction IndexCustomer Satisfaction Index

Editor's Notes

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